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Re: News Release - Wednesday, January 16, 2008
Fortuna drills 7.95 meters with 9.37 g/t Au and 487 g/t Ag at San
Jose, Mexico
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January 16, 2008: Fortuna Silver Mines Inc. (FVI: TSX-V) is pleased to
announce additional drill results from the 2007 drill program at the
San Jose silver-gold deposit located in Oaxaca, Mexico. The San Jose
Project is being explored and developed under a joint venture between
Fortuna (76%) and Continuum Resources Ltd (24%).
Assay results have been received and accepted for 5 drill holes located
in the Trinidad Zone and for 6 drill holes located in the San Ignacio
Zone (southern extension of the San Jose vein system). Highlights of
the current results in the Trinidad and San Ignacio Zones include:
Drill hole SJO-084 cut multiple mineralized zones within the San Jose
vein system including:
-3.07 g/t Au and 446 g/t Ag (603 g/t Ag eq.) over 5.23m from 490.92m in
the Paloma Vein, and
-9.37 g/t Au and 487 g/t Ag (965 g/t Ag eq.) over 7.95m from 503.35m in
the Bonanza Vein
(The mineralized intercepts extend from 460m to 525m below the current
surface and are opento- depth.)
-Drill hole SJO-090 cut the vein system in the northern portion of the
San Ignacio zone returning 2.13 g/t Au and 276 g/t Ag (385 g/t Ag eq)
over 1.0m from 167.37m
Assay results from the 5 drill holes in the Trinidad Zone are
summarized below. Length-weighted assay averages have been calculated
for the mineralized intervals using a lower cut-off of 100 g/t
Agequivalent. True widths of the mineralized veins are estimated at
approximately 75 to 90% of the drill intervals. An updated longitudinal
section showing the location of the drill holes will be posted shortly
on Fortuna's website at www.fortunasilver.com.
Hole No. From (m) To (m) Interval (m) Au (g/t) Ag Ag eq
(g/t) (g/t)
SJO-082 567.61 570.6 2.99 0.7 134 170
SJO-083 224.4 225.4 1 0.52 112 139
SJO-084 490.92 496.15 5.23 3.07 446 603
SJO-084 503.35 511.3 7.95 9.37 487 965
Including 506.52 506.82 0.3 164 5660 14024
SJO-084 517.64 518.77 1.13 1.13 258 316
SJO-084 578.9 583.6 4.7 0.4 110 130
SJO-085 388.9 390.35 1.45 1.49 199 275
SJO-092 No significant mineralized intervals
*Silver equivalency estimates were derived using a silver-to-gold ratio
of 51:1. Metallurgical recoveries and net smelter returns are assumed
to be 100% for purposes of estimating silver equivalency.
Twenty-three drill holes totaling 8910.2m were completed in the 2007
drill program to test an 800 meter long interval of the San Ignacio
Zone, the southern extension of the San Jose vein system. To-date,
assay results have been received and accepted for 6 drill holes and are
summarized below. Length-weighted assay averages have been calculated
for the mineralized intervals using a lower cut-off of 100 g/t
Ag equivalent.
Hole No. From (m) To (m) Interval (m) Au (g/t) Ag (g/t) Ag eq
(g/t)
SJO-090 167.37 168.37 1 2.13 276 385
SJO-095 No significant mineralized intervals
SJO-099 140.4 142 1.6 1.15 49 108
SJO-100 No significant mineralized intervals
SJO-103 68.65 70.45 1.8 1.26 194 258
SJO-103 76.83 78.23 1.4 0.72 113 150
SJO-104 No significant mineralized intervals
Assay Delays
Final assay results remain pending for 9 drill holes in the Trinidad
Zone and 17 drill holes in the San Ignacio Zone. Due to increased
industry activity, assay turn-around times at ALS Chemex have increased
dramatically since September of 2007 and currently are greater than two
months. In addition, a significant number of samples have been sent for
re-assay due to failure to pass Fortuna's internal QA/QC criteria,
resulting in further delays in obtaining final assay results.
Background
The San Jose deposit is a low sulfidation epithermal system located
within the Taviche Mining District in southern Oaxaca and is
characterized by mineralized multiphase quartz-carbonate-sulfide veins,
hydrothermal breccias and stockwork veining within a sequence of
Tertiary andesitic volcanic and volcaniclastic rocks. Using a cut-off
grade of 150 g/t Ag equivalent, 43-101 compliant indicated and inferred
mineral resources for the Trinidad zone at San Jose are currently
estimated at (see Fortuna News Release dated March 12, 2007):
- Indicated Mineral Resources: 1.47 million tonnes grading 262.6 g/t Ag
+ 2.19 g/t Au containing 17.7 million Ag equivalent oz
- Inferred Mineral Resources: 3.9 million tonnes grading 260.6 g/t Ag +
2.57 g/t Au containing 49.1 million Ag equivalent oz.
The Fortuna-Continuum joint venture controls mining concessions
covering approximately 47,500 hectares in the Taviche Mining District.
Detailed geologic interpretation and modeling of the Trinidad deposit
are being carried out and will lead to an updated resource estimate
currently projected for completion in the 2nd quarter of 2008. The
joint venture is advancing with various engineering studies including
preliminary design work, metallurgical testing and initiation of an
Environmental Impact Study. Underground development of the main access
ramp to the Trinidad Zone began in the 4th quarter of 2007.
Quality Assurance & Quality Control
Following detailed geological and geotechnical logging, drill core
samples are split on-site by diamond saw. One half of the core is
submitted to the ALS Chemex sample preparation facility in Guadalajara,
Mexico. The remaining half core is retained on-site for verification
and reference purposes. Following preparation, sample pulps are sent to
ALS Chemex in Vancouver where they are assayed for gold and silver by
standard fire assay methods using a gravimetric finish. Multi-element
analyses are also completed for each sample by ICP methods. The QA-QC
program at San Jose includes the blind insertion of certified reference
standards for silver and gold at a frequency of approximately 1 per 15
normal samples and the insertion of assay blanks at a frequency of
approximately 1 per 15 normal samples. All sample results reported in
this news release correspond to HQ- or NQ-diameter core.
Qualified Person
Mr. Gregory Smith, P.Geo., is the Company's Qualified Person as defined
by National Instrument 43-101 and is responsible for the accuracy of
this news release.
Background
Fortuna is a growth oriented, silver and base metal producer focused on
mining opportunities in Latin America. Our primary assets are the
Caylloma Silver Mine in southern Peru and the San Jose Silver-Gold
Project in Mexico. The Company is aggressively pursuing additional
acquisition opportunities. For more information, please visit our
website at www.fortunasilver.com.
The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release.
ON BEHALF OF THE BOARD
Jorge Ganoza, President
Fortuna Silver Mines Inc.
Tel: 604-484-4085
Symbol: TSX-V:FVI
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Copyright (c) 2008 FORTUNA SILVER MINES INC. (FVI) All rights
reserved. For more information visit our website at
http://www.fortunasilver.com/ or send mailto:info@fortunasilver.com
Message sent on Wed Jan 16, 2008 at 7:25:10 AM Pacific Time
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